VSCode not running discovered PyTest tests when path contains a symlink #17573

Environment data

• VS Code version: code --version
  1.60.2
  7f6ab5485bbc008386c4386d08766667e155244e
  x64
• Extension version (available under the Extensions sidebar): v2021.9.1246542782
• OS and version: Ubuntu 20.04 5.4.0-84-generic
• Python version (& distribution if applicable, e.g. Anaconda): 3.8.10
• Type of virtual environment used (N/A | venv | virtualenv | conda | ...): N/A
• Relevant/affected Python packages and their versions: Pytest 6.2.5
• Relevant/affected Python-related VS Code extensions and their versions: (probably unrelated) Pylance v2021.9.4
• Value of the python.languageServer setting: Pylance

Expected behaviour

Run discovered Tests when running all tests.

Actual behaviour

Tests are discovered correctly but doing Run All Tests will turn the icons blue briefly and then return to the state before running them (gray circle with black box in the middle) almost instantly.

Steps to reproduce:

1. create a folder called e.g. repositories
2. checkout out any python project containing a test-folder with pytest tests
3. verify these tests run using the discover tests and run all tests features
4. move the repository folder to a different path(in my case a path on a different drive)
5. create a symlink using ln -s /new/path/to/repositories /old/path/to/repositories
6. verify your symlink is correct by either ls -l or by doing cd /old/path/to/repositories
7. start vscode with the path containing the symlink so cd /old/path/to/repositories/code_repo && code .
8. Tests are discovered correctly but doing Run All Tests will turn the icons blue briefly and then return to the state before running them (gray circle with black box in the middle) almost instantly.
9. Close VSCode and cd into the repo without a symlink in the path(cd /new/path/to/repositories/code_repo && code .
10. Tests now run again!

Logs

Sadly not output whatsoever, the only indication of clicking on runalltests(or using ctrl+shift+p to do it) is the briefly blue-flashing icons next to the tests.

This is the Output -> Python output but as mentioned above, doesn't seem relevant:

User belongs to experiment group 'pythonaacf'
User belongs to experiment group 'pythonJediLSP'
User belongs to experiment group 'pythonDiscoveryModuleWithoutWatcher'
User belongs to experiment group 'pythonTensorboardExperiment'
User belongs to experiment group 'PythonPyTorchProfiler'
User belongs to experiment group 'pythonDeprecatePythonPath'
User belongs to experiment group 'pythonSortEnvs'
User belongs to experiment group 'pythonRunFailedTestsButtonDisplayed'
User belongs to experiment group 'pythonRefreshTestsButtonDisplayed'
User belongs to experiment group 'pythonRememberDebugConfig'
Python interpreter path: /usr/bin/python3
Starting Pylance language server.